The first virtual cryptocurrency ATM has been installed in Uruguay, and was developed as a joint initiative of Urubit and Inbierto, two national cryptocurrency companies. This is a milestone for the country, which according to estimates has between 40 thousand and 50 thousand cryptocurrency users, and whose primary method of buying cryptocurrency is based on peer-to-peer markets.
Uruguay enters the era of ATM encryption
Uruguay received the first reported cryptocurrency ATM in its territory, which has already been installed in Punta del Este, a city located in the southeast of the country. The cryptocurrency machine was developed by two national crypto companies: Urubit and Inbierto. The former focused on the software part of the system, and the latter provided hardware for ATMs.
Adolfo Varela, CEO of Inbierto, stated that one of the goals of this machine is to create confidence in the country’s cryptocurrency market, as most crypto-trading takes place in peer-to-peer markets that cannot go through banking services due to lack of regulations. With cryptocurrency ATMs, the possibility of falling victim to a scam is said to have been eliminated. Varela believes that they will continue to grow and expand their network of crypto ATMs across the country. He said:
We intend to continue to grow in Maldonado, then Colonia, Montevideo, and by the end of the year we want to cover all of the national territory. And so it occurred to us that other countries had consulted us so that they could install it.
The installed crypto ATM supports only five cryptocurrencies (which includes two national tokens): mongos token, urubit, bitcoin, binance coin (BNB), and binance USD (BUSD). The companies did not offer Ethereum hardware support as they rely on the Binance Smart Chain (BSC) to process transactions. Varela explained that the Ethereum fee will prevent users from using the device, which is why BSC integration was chosen instead.
Organize a gray area in the country
Cryptocurrency regulation remains a gray area in the country, but the central bank issued a statement in October last year, declaring that these assets are neither legal nor illegal, and that citizens can use them while being aware of the risks they carry.
In a document released in December, Uruguay’s central bank laid out a roadmap for regulating crypto assets, proposing a review of existing laws and changes to include them in several existing regulations, rather than creating a hypothetical asset law to include the realm of these assets in just one project.
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